Friday, December 28, 2007
XOI Oil Index - Symmetrical Triangle Break Out
A while back we showed the XOI in an ascending triangle stance. Well, it has broken out and the target off of this triangle is... gulp, the 1770's. Hard as it is to believe. There is something in my DNA that does not allow me to momo a market like this, hence I bought some top uranium names that had suffered humiliating declines and a CanRoy that had suffered a similar decline. But I expect a lot of breakout traders have seen this chart and taken note. Edit (12/29 @ 8:10 am) To answer Claude's comment on Uranium, the stocks I have bought were taken near the recent bottom. This could indeed be an a-b-c in the spot price on the way to lower levels, but the stocks have double bottomed and this may be only a trade. I do not have enough of a feel for the dynamics in the energy and industrial metals patches to call the U's an investment quite yet.